Germany Is Europe’s Economic Engine. It’s Starting To Sputter
Big Take
00:00
The German Economy Is Struggling to Adjust to the New Reality of Higher Energy Prices
The German economy is now struggling to adjust to this new reality of higher energy prices that's been unleashed by the war in Ukraine. Energy-intensive industries, which tend to be defined as an operation where energy costs of a quarter of the input costs, are really feeling the pinch and squeeze from these higher energy prices. And we're seeing in the chemical sector, Germany has this huge chemical sector, third only to the US and China, and proportionally much bigger than those two countries. There's just been immense kind of plant shutdowns, lots of companies are turning down output because there's no money to be made in these gas-intensive kind of chemical processes.
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